The ongoing labour dispute between Canada’s largest railway companies and their workers is driving up the cost of shipping by truck. Train cars are seen on the tracks in an aerial view at Canadian National Rail's Thornton Yard as trucks transport cargo containers on the highway, in Surrey, B.C., on Thursday, Aug. 22, 2024. THE CANADIAN PRESS/Darryl Dyck
TORONTO – The ongoing labour dispute between Canada’s largest railway companies and their workers is driving up the cost of shipping by truck, with smaller businesses disproportionately affected.
The co-founder of a Canadian startup says he’s facing wildly inflated trucking costs due to the ongoing dispute, with one quoted price more than double what it would typically cost.
Brust Protein Coffee co-founder Josh Barr says he will lose money if he pays the approximately $11,000 quoted to him for a truckload from Toronto to Calgary.
Though the federal government is intervening in the work stoppage that began early Thursday morning at Canada’s two major railways, the union is pushing back on the government’s efforts to get them back on the job, making it unclear when freight traffic will be fully back online.
Retail Council of Canada spokeswoman Michelle Wasylyshen says the trucking industry can’t possibly take on the sheer volume normally sent by rail, driving demand higher and prices along with it.
She says while larger retailers may have existing contracts with truckers at more normal prices, any companies scheduling at the last minute will be facing higher costs right now.
This report by The Canadian Press was first published Aug. 23, 2024.
